Published on 9/4/2019 in the Prospect News Investment Grade Daily.
New Issue: Unum prices $450 million 4.5% 30-year senior notes at 255 bps spread
By Rebecca Melvin
New York, Sept. 4 – Unum Group priced $450 million of 4.5% 30-year senior notes (Baa2/BBB/BBB) on Wednesday at 99.99 to yield 4.501% and a spread of 255 basis points over Treasuries, according to an FWP filing with the Securities and Exchange Commission.
BofA Securities Inc., Goldman Sachs & Co. LLC, HSBC Securities (USA) Inc. and Wells Fargo Securities LLC were the joint bookrunners.
Proceeds will be used for a $300 million cash tender offer for Provident Financing Trust I’s $226.5 million of 7.405% capital securities due 2038, the company’s $48.78 million of 7.19% senior notes due 2028, its $165,844,000 of 6.75% senior notes due 2028 and its $350 million of 3% senior notes due 2028; and for general corporate purposes.
Unum is an employee benefits provider based in Chattanooga, Tenn.
| Issuer: | Unum Group
|
| Amount: | $450 million
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| Description: | Senior notes
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| Maturity: | Dec. 15, 2049
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| Bookrunners: | BofA Securities Inc., Goldman Sachs & Co. LLC, HSBC Securities (USA) Inc. and Wells Fargo Securities LLC
|
| Co-managers: | Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Deutsche Bank Securities Inc., U.S. Bancorp Investments, Inc., BB&T Capital Markets, a division of BB&T Securities, LLC, BNY Mellon Capital Markets, LLC, Fifth Third Securities, Inc., Regions Securities LLC and SunTrust Robinson Humphrey, Inc.
|
| Coupon: | 4.5%
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| Price: | 99.99
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| Yield: | 4.501%
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| Spread: | Treasuries plus 255 bps
|
| Call features: | Make-whole call before June 15, 2049 at Treasuries plus 40 bps; thereafter at par
|
| Trade date: | Sept. 4
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| Settlement date: | Sept. 11
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| Ratings: | Moody’s: Baa2
|
| S&P: BBB
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| Fitch: BBB
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| Distribution: | SEC registered
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| Marketing: | Fixed income investor calls
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